Board member misrepresentation

Started by DawnL6 • 12 replies • 415 views

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DawnL6 (South Carolina)
Posts: 226

Posted:

What to do about a board member that register of deeds state owned 2 seperate units at one time and has not been record owner since until recently,when confronted about this added his name onto another person's unit just recently.the horizontal property regime states "of record owner".

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Huh? Can't follow. Who pays the taxes?

Former HOA President

DawnL6 (South Carolina)
Posts: 226

Posted:

Sorry,on my end everything I write is scrambled.a board member owned 2 units at 1 time but sold those a few years back.hasbnot been record owner or shows any taxes that has been paid is his name.on record,his address is not here in our association.he was confronted about even being an owner after several years now.but after being confronted back last year around September or October ,his name has appeared at the deeds office on a unit with another man that has lived here for years.thst unit was not 1 that he originally owned

TimB4 (Tennessee)
Posts: 21,059

Posted:

My understanding of your post.

Individual once owned two units (suspect condo since the use of units)
Individual was elected or appointed to the board.
Someone did a search and discovered that this individual was not on either deed to the units.
Individual was confronted.
Individual is now registered on a deed of one unit.

Unknown - do the governing documents specify that a director must be a registered owner (or does the OP simply think it's implied)?

Regardless of what the governing docs say, per your posting the individual is now on the deed.
Hence the issue (real or perceived) is resolved.

NOTE: I say perceived because most governing documents do not specify ownership as a requirement to be a director. However, some Associations have made such a change. Please verify if this requirement actually exists.

DawnL6 (South Carolina)
Posts: 226

Posted:

Yes.our deed states all members must be owner.and vice versa.this board member sold several years ago.our deed states that owner has to be record owner.the board has adopted rule that if you sale or lease there is a $500 transfer fee.since his name was added to another owners deed,should there be a transfer fee?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

Now we get to the real question. The transfer fee. I don't know if they do or do not have to pay it. They could have formed an "LLC".(Limited Liability Corporation). That is how some investors set up shop now a days to rent out properties.

What does it matter to you if they did or did not pay?

Former HOA President

CathyA3 (Ohio)
Posts: 6,299

Posted:

Quote:

Posted By MelissaP1 on 04/12/2022 4:34 AM
Now we get to the real question. The transfer fee. I don't know if they do or do not have to pay it. They could have formed an "LLC".(Limited Liability Corporation). That is how some investors set up shop now a days to rent out properties.

What does it matter to you if they did or did not pay?

And if the owner on the deed is an LLC, then that corporation will appoint someone to act as its agent. The agent can vote in the annual election and can serve on the board.

Transfers of property are the business of those involved in the transfer. It's pretty unusual for condo associations to have a say, although it can happen with other forms of communal property (eg. New York co-ops).

Regardless of the somewhat loosey-goosey history, it sounds as though things are sorted out now and whatever the perceived issue was, it no longer exists.

PatJ1 (North Carolina)
Posts: 568

Posted:

He also could have been added through a Quit Claim Deed. These can be done without the HOA knowing about it.

We see this often when an elderly resident is adding a child to the deed, or removing someone.

AugustinD
Posts: 3,698

Posted:

My opinion, based on the inevitably limited "facts" of an internet forum:

-- Either forget about the transfer fee, or if you are determined to make an issue of this, please quote verbatim the covenant on transfer fees.

-- Recognize that unit ownership is public record. Any owner could have challenged this director's being on the board. But a majority clearly did not. In my opinion, this director, while he was not an owner, was operating by the consent of the owners. This has legal sway in a court. Your chances of, say, undoing prior board decisions are close to zero out of 10,000.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By DawnL6 on 04/11/2022 7:39 PM
Yes.our deed states all members must be owner.and vice versa.this board member sold several years ago.our deed states that owner has to be record owner.the board has adopted rule that if you sale or lease there is a $500 transfer fee.since his name was added to another owners deed,should there be a transfer fee?

Is that members of the association must be an owner or to be a director, one must be a member.
Two different things. Please cite the section if you are not sure.

MaxB4
Posts: 3,513

Posted:

IMO, since there was no change of ownership, or change of tenant, there should be no transfer fee. A transfer fee should only apply when someone physically moves out of there unit, and another party moves in.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Quote:

I say no transfer fee as there was not a sale nor a lease. Just a name being added to the deed.

DawnL6 (South Carolina)
Posts: 226

Posted:

Our deed states record owner,and the board has adopted rules and regulations about living in a unit as a "NON HOMEOWNER",that their would be a $500 yearly administrative fee.

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